The Valve Console will Severely cut Microsoft’s Next Generation Console and game Sales

Gabe Newell has announced that Valve will be jumping into the console wars next year, with console built for living rooms. This machine is to directly challenge Microsoft and Sony’s next generation consoles. With Valve creating a console, there will be major repercussions throughout the industry. Microsoft, Sony, and Nintendo will all be affected one way or another. We think that Microsoft will ultimately lose the most sales for a variety of reasons. Hit the link to find out why. And Please comment on what you think.

one advantage that Steam could have with 3rd party publishers is that it takes less royalties from them.

if I get this right Valve only takes a stake in games as a retailer, while with console games the platform holders take about 12$ and the retailers also take 12$, leaving only 36$ fro publishers and developers. so with steam they can have as much as 48$ per 60$ game.

The Library is the big thing. If they can add console style controls to even 1/2 the PC games they offer, they will have a library larger than any of their competitors right off the bat that is friendly to a console audience. That's the big coup. And it works for people like me that have a PC/ HDMI out setup too :)

ps4 rumoured to be using HD6670 same as the Xbox720,Wiiu confirmed E6760/6770 hybrid. Look it up i say the 6770 rumours are to do with the E6760 having half the terraflops ie the rumour that Nintendo made the gpg run at 1 terraflop for UE4,the 6770 runs at 1.2 terraflops/6760 at 576 giggaflops basically half so think a E6760 that runs at 1 terraflop.

@metroid32 No its not,the only console to have that was the next xbox but that turned out to false after those leaked documents hit the net and Sony's rumored gpu is to have 1800 gflops of performance,that's either an underclocked radeon 7970m or a slightly cut down radeon 7870.

Most PC games already allow for controllers and they use the Xbox360 controller as their default. If a game doesn't support controllers, it usually means the game is too hard to play with a one. ex. Diablo 3, Starcraft 2, etc.

Instead of asking, "If they can add controllers..", you should be asking, "Will they still be allowing keyboards and mice?"

If they still allow keyboards and mice, people playing with controllers are in for a world of hurt for certain game genres. FPS's, RTS's, ARPG's, etc all perform better with mice. You simply cannot match the speed and accuracy of it and people playing with a controller will suffer huge disadvantages to those playing with a KB+M.

only MS being potentially affected? I mean if there is a new system coming on the market, you can bet that pretty much all existing systems and companies would be taking notice. Not just 1.

On a side note, it would be really funny if this new valve project is actually backed by MS.

As if Ms would not directly bow out but fund the development of another system with another company at the helm. It somewhat makes sense (in a strange way).

i mean MS designed xbox live in the way it is before Steam took a similar approach. So obviously the live layout was something of a blueprint for Steam to use to grow to what it is now. Even sony has studdied live and how it works.

People can be pissed at MS for who MS is but some of their ideas have gone on to help lay the groundwork for other companies today. No doubt there would be a PSN but perhaps it was the way MS made live that influenced Sony to develop PSN the way it is now. Same with Steam.

It doesn't matter how powerful it is. By simply running on desktop nVidia drivers, the rendering quality and image sharpness will be 5x better than any console, regardless of the graphics level settings.

"Can the Wii U keep up?" That is what I want to see, I really think it will because Nintendo have some worthwhile exclusives and the casual players will probably enjoy it. Nintendo are not rhino, they're doing what they always do so in this case, of course they'll succeed with the U.

Steam's main issue will be exclusive content and being digital only. Other than that they have pretty much everything else going for them. When it comes to smaller games and indie titles Steam is King. They also have the upper hand in value for software and software support (patches and fixes). What Microsoft will do to trump Steam is marketing. Steam doesn't have the retail penetration nor the marketing budget.

I myself would prefer Valve doing better than the other console makers but I have doubts they will be a major competitor outside of the already existing PC community.

Retail won't sell it if it's just a digital box to play your steam games on your tv. This will end up being just a niche product aimed at it's current users, it's mostly them who know what steam is. Valve will struggle for name recognition and retail space, which is a high premium. It would require billions from valve to establish it as a real competitor which they may not be willing to spend.

The steambox will steamroll the other consoles. I quit pc online gaming years ago because of the cheating and differences in performance of each persons pc. Id go back in a flash if the steambox can level the playing field.

The number of people that are signed into Steam fluctuates between 3 Million and 6 Million depending on the time of day. That number is currently at 5.3 Million and most people in the United States are either asleep or at work.

Seriously, Steam is hardly a niche market, and pretending that it is is ridiculous.

Your right, I would hardly call steam niche. It's user base ranges from super casual to ultra hardcore. I couldn't really see the ultra hardcore picking up this kind of thing since they would be more apt to want the most powerful system available, which means they'll build their own. The super casual may not bother with it because they may be perfectly content with however they play now and not see the need for it.

That leaves the middle of the road people. Quite likely a huge number. So lets assume half of them pick up a system, with about 50% more who never heard of steam picking it up. Is that still enough to sustain another viable system on the market?

Steam is popular, and I think they do a great job for the consumers, but they may face an uphill battle in gaining market share, especially going into a new console generation where competition is likely to get fierce. Unless the steamBox offers something that the end user can't get on the PC then what's really the point in owning one if your at least mildly tech minded?

Why wouldn't retailers sell it? Valve releases their own games at retail just like Sony and Microsoft do. Microsoft and Sony also have stores where you can download games. Valve has also released Steam Cards similar to PSN cards or Microsoft Points Cards.

The only difference between Steam and the others is that you don't need dedicated hardware to use Steam. I should also mention that there are games like Modern Warfare 3 and Black ops 2 for PC that are available at retail that use Steamworks, in which case you need to download the Steam Client to play the game.

This article sucks. Lot's of predictions, future telling and FUD. 3rd party games are going to be better on Steam Box? Says who? How do you know this? Steam online will be better? How do you know this? They have never had a home console. Many consumers are NOT PC gamers. They are CONSOLE gamers.

Joe six pack knows playstation, nintendo and xbox. He does not know Steam. Why would 3rd party games be the choice to buy on a new console nobody has heard of? Steam has been a PC only thing.

Me thinks we are going to have lot's of articles from PC people, that are now excited about consoles. Not saying the author of this article is like that, but I'm guessing lot's of PC only elitist that frown on consoles, are going to be all excited for console stuff.

It's going to be funny.

Don't get me wrong, Steambox could be a great console. Not sure what exclusives that everyone cries about will it have. But it should be a good gaming console. Sucks for our wallets. Now we have to get a 4th console.

im pretty sure it will just be a midrange fixed hardware pc so they can port the steam library to it. it's pretty much up to gabe if they are gonna put really goood hardware in it or just make pc gaming mora accessible to the masses by offering a cheap do it all solution.

I literally face palmed for the first time ever when the announcement came out a couple days ago. Not because of the concept, but because of all the comments. For the longest time PC gamers have been touting the virtues of PC's, only to come out and start saying how great a console is now going to be, even though it will be limited by most of the things that consoles are limited to now.

If SteamBox is priced the same as next gen consoles, which is reasonable to assume, there is no reason that the tech inside will be any better than what the others are offering. Valve has quite a bit of money in the bank, no doubt, but they can't afford to take a major hit on hardware just to provide the end user with a high-spec console.

I'm curious about it myself. The lack of physical media bothers me since I'm not a huge fan of DD, but I think the console has merit.

It'll be an interesting experiment and will be nice to see if a full DD platform can gain significant market share. I believe right now Sony, MS, and Nintendo are going to be looking at that statistic more than anything else. If the SB manages to get a foothold and leg up with a DD model, then next gen could really be the last gen for physical media.

They can't even get windows right. Glad it's selling 58% less than win7.

"According to Murphy, Microsoft only wanted Rare for their kiddie games, hence the Banjo spinoffs and no follow-ups to Perfect Dark outside of the niche fan-favorite Perfect Dark Zero. Don stated that it was Rare's versatility covering kids and adult games throughout the N64 and GameCube era that helped them stay relevant, but having a lot of their mature themed games shotdown created a negative atmosphere within the studio, causing a lot of key talent to part ways with the company." http://www.cinemablend.com/...

How is Steel Battalion working out? Remember that big as controller from the first one? lol kinect.

Lets see what happen next gen when kinect 2.0 is ready right from day 1.

I think it will sell well. A LOT of PC guys I know that refuse to purchase a console have all told me that they will without a doubt be supporting Valve's "console" (not really a console, but a trojan horse to put a PC in the living room) because of things like Valve's steam service, sales, and support.

I will be purchasing one. But then again I will also be purchasing the next Xbox and PS as well.

If you currently use steam 'big picture mode' beta you can already get a clear idea what it is. I must say its pretty neat for me since I hook up my PC to my TV. I'd say Steam will be pushing for more plug and play and default support with controllers and settings. I know alot of people that will buy a steam box now if the hardware represents good value

SONY has no Halo, Gears, Fable, or Mario, Zelda, day 1 sellers that warrant a midnight release. Also, SONY is having financial problems. SONY cant have a R&D fight & not recoup the funds because the market is thin.

Valve has: Half-Life & Steam. That isn't enough to excite the crowd. This is going to be a battle for them

Huh? You mention Forza but not GT which sold way more? And Fable which hasn't sold a huge amount? And not PSN?

MS has the most to lose from Steam who has had many of the Xbox "Exclusives", but where PC/PC monitor based. I don't know how many Xbox "Exclusives" were bragged about that were also on the PC. Now that "exclusive" on a console point that MS heavily leaned on is dead.

And while PSN has adopted a way more digitally focused feature set with PSN+, Live still is basically for playing Online like it was in 2005.. Live hasn't changed much at all except for adding streaming services. I can't believe how much they sat back while PSN gave users things like games, and are trying things like free Killzone 3 online.

That's not to say that Sony is doing great. But they are very well positioned for going more digital game wise than XBL IMO and have the studios and exclusive numbers to back them up.

Word of mouth from US players specifically could hurt MS greatly. This is a major move if there is a TV marketing push for core gamers. I see MS going the Kinect Wii route this gen and Valve, Nintendo and Sony will fight for the core game space. Valve and the Half life brand is strong and will get stronger once that is now an exclusive. Left 4 Dead and Team fortress aswell. I honestly don't see what MS can do but out market Valve to retain market share among core gamers. I think that MS with a Kinect type device will still draw the soccer moms for dance games etc... However, for core gamers all you may need is Steambox and Orbis for the mature core gamer to get their worldwide studio gaming fix. I am PC and PS3 right now and a little Vita on the side so I am truly intrigued and interested in what Valve brings to the table. If they still allow mods to games and hardware I don't see MS being able to compete with Valve among core NA gamers who respect PC gaming.

It really depends on what the steam box is. There just isn't enough information to really say if it will do well or not/ will cut user base from X. I am slightly worried what market this system is really targeting. The fact parts can be upgraded is actually a dissadvantage to the average consumer and is really only an advantage to the more gaming obsessed crowd (i.e N4G users). So its appealing to a niche market who go on websties like this but do not own their own rig (btw i am part of that market). More information is needed (digital only......) but at the moment I am confused what market (if any) the system really fits into.

And a lot of those user have their own rigs or a PC that is fine for playing the odd game here and there. Those millions of users all ready have a way to play with steam and especially when it all ready has its big picture mode. Why would they buy the steam box and even valve has said this isn't the target audience

@iamnsuperman no PC gamer is expected to buy the SB, Valve doesn't need that and it is not their plan (an epic fail if it is), it is like how the iPod was able to play all iPhone games at launch without starting from zero, all games should be cross play/buy with PC.

as for gamers one good thing is that could force MS to re-fucos on hardcore games, in the last few years(post Kenect) it was putting new resources on making casual games, being content with the handful of the established games they have and leaving risks for 3rd party publishers, leveraging their big install base in living rooms and not felling threatened by games also coming to to a locked in PC gaming community, but SteamBox could change that

Steambox won't do very well in my opinion. Think about it. The reason Microsoft and Sony were able to enter the gaming industry and start off really well is a combination of having the resources to throw a lot into entering the industry, and brand recognition. Everyone knows who Sony and Microsoft are beyond their consoles. Can anyone say the same about Valve and/or Steam?

Plus, I can smell the faint stink of piracy looming from behind the Steambox and its likely very open structure. Piracy is a big enough problem on PC and do people think it wouldn't be the same on the Steambox?

Steambox has to go up against big brand name recognition, it has to gain A LOT of exposure from more than just its 4 million users of Steam, and it has to have a library to rival the big 3. It has a huge battle ahead against the big 3. Same with Ouya.

Why would Sony and MS be threatened by Valve? That's like being threatened by Ouya. You're talking about two multinational conglomerates with decades of brand recognition and hundreds of millions of fans against a small company known mostly by a niche PC gaming crowd and not even for their games but for their online store. Sony and MS have nothing to be worried about from a console that will be a pirate's heaven, will not have the same kind of huge backing that the Big 3 have in games, and has a huge hill to climb in order to even be in the same game as MS, Sony, and Nintendo.

It's funny to see how many people choose to discard reality in favour of overestimating this "console" just because they love an online store.

^ You've made a few fair points, but please, don't make assumptions about piracy and third party support and then try to pass it off as reality.

Valve has an uphill battle, but they're not as obscure as you set them out to be, especially among people who are more into gaming. The obvious threat to MS/Sony is that 'core' gamers might be more inclined to jump ship. That's the relatively small pool of people that are responsible for a large portion of game sales.

This isn't as big of an issue for Sony since they at least have free online and some quality exclusives, but Microsoft is put in an odd position. Valve would be able to provide a better online service than XBL (likely for free) while having cheaper games (if they have their own digital store).

@fatoldman: "don't make assumptions about piracy and third party support and then try to pass it off as reality."

If you don't think piracy is a problem on PC, ask all the devs who refuse to put games on PC because of it. Better yet, ask Gabe Newell what he thinks of piracy. He'll tell you something along the lines of "it's a problem because of.." and then insert something like "DRM" or "low quality games" or something like that. It is an acknowledged problem by the best PC devs out there and that's a fact. Especially when some in the community fly off the handle and pirate games for having GFWL support. As for third party support, in all likelihood it will be minimal due to funding. Steambox will likely mean that devs would have to self-publish because I doubt Valve has the kind of money to publish a lot of games themselves and with the rising costs of development, 3rd party devs will be looking for publishers and what makes you think that those publishers will be inclined to put content on a console that doesn't give them a cut of the money? Someone said in a post about this that Valve only takes a retailer cut, but that's only for Steam. It's a whole different beast when you're talking about consoles.

Then there's the rumoured "digital only" aspect that would alienate many countries that don't have the infrastructure. Don't think that devs and pubs won't take that into consideration. There's also retail stores that would fight that as well.

Too many people are making this out to be the godsend console and quite frankly it doesn't look like it will be if any of these rumours are true. It just isn't there. You say Valve isn't as obscure as I made it seem, but in truth they are. The only people that know them are PC gamers who use Steam and core gamers who've been gaming awhile and it's been said that the Steambox would NOT be for these people. But beyond those people, who knows Valve? Does your mother know Valve? Does anyone's grandmother know them?

The SteamBox would likely use OpenGl, which means that a game made for SteamBox can easily be ported to Windows and OSX. For a developer, this means they can develop a game for one system in mind, and then have it accessible across a broad range of consumers because OpenGL is cross-platform.

If it is digital only, you don't need publishers, and if it isn't, then publishers have the opportunity to have their games available on 3 viable platforms by changing the way they develop the PC version.

Steam has 40+ million registered users, and they have fans from games like Portal, L4D, TF2, HalfLife and CS (and soon, Dota2). They also have a good reputation among their customers. That's not a bad starting point for someone jumping into the console hardware business. As for the console being a godsend or not, there isn't enough information to really make any judgement. Most of what you and I are doing is just making assumptions off the few tidbits that we know. I can't fault people for getting excited about it though, as this is something that was unexpected.

Valve isn't dependent on their user base buying the Steambox the way the other console manufacturers need their customers to buy their new consoles next year. Valve's customers with custom rigs will keep their custom built rigs. People curious about Steam but intimidated by building a rig or locating drivers will have an option to access Steam with the Steambox. I definitely have friends who don't feel comfortable with the idea of trying to build their own gaming PC who will probably be interested in the Steambox.

It could b the death of all 4. With three and this economy and cost of games, i assumed one of the three would die off. Now, a fourth.

I think, though that it could affect pc gamers that have moved from console and use steam. Ppl r invested in their xbox and psn accounts. Nintendo may suffer too. Or, valves new box doesnt take off. Does it come out first, how much does it cost, what r the specs? Itwill have to b markedly better to pry ppl away from years of investment. Over time it may work. Is it worth it for valve to do exsclusives?

A lot of people outside these forums don't even know what steam is. When this console launches a lot of people will just see it as a new console. This console isn't aim for the common pc crowd since they already have that demographic locked in. I honestly see it having an uphill battle since it's the new kid in town. Has a lot to prove.

I'm pretty sure a lot of steam's users with a PC that needs upgrading will buy it if it lets you play the games you bought on PC; since steam has an enourmous 50 million user base I'm pretty sure that it will give a good boost to its popularity and don't that steam got awesome sales and most new games are at 50$ instead of 60$.

If Valve does it right they might end up being the best selling console next gen, if they don't this may be another dreamcast.

But Valve's entire success isn't contingent on this device. Console manufacturers usually invest an insane amount of money and then have their success or failure (for perhaps of the entire company, not just the device itself) contingent on that machine selling.

I don't see Valve sinking all their cash into creating something like the CELL or whatnot. If Valve takes the route of using decent but affordable PC parts and sets realistic expectations, they still have their 40 to 50 million customers even if the Steambox never really takes off. They don't go under if their device fails the way other console manufacturers would. As long as they don't get careless about how much they invest in this thing, it's not a huge risk the way it would be for other console manufacturers.

An event which may or may not happen; that which is unforeseen, undetermined, or dependent on something future; a contingency. That which falls to one in a division or apportionment among a number; a suitable share; proportion;

Wow, I don't have to say much about how badly you failed here. Maybe you should learn the basics of the English language before you start attempting to correct me. You're way out of your league if you are attempting to give me a lesson.

contingent- dependent on or conditioned by something else <payment is contingent on fulfillment of certain conditions>

its funny how neither Microsoft or Sony will admit anything about their new consoles. its almost irritating because they think the over-saturated gaming market is just waiting to buy these next gen systems. when in reality if your buying an xbox360 or ps3 in 2012 your either broke or not an avid gamer, so for microsoft and sony to assume they will get sales next gen like they did with the ps3 and xbox360 is a joke. people who bought a ps3 or 360 in 2012 for black friday most likely are either replacing a current faulty console or buying their first this genertion, these people will wait another decade to buy the xbox720 and Ps4.

not to mention since the current gen started many wii gamers and casuals are now enticed into buying tablet, phone or other handheld portable gaming devices, these werent around back in '05/'06 to cut into gaming sales like they are in 2013. and now you have ouya and steambox entering the market, plus more triple AAA free to play titles on pc. these are all things that will certainly eat into the gaming customer base that microsoft and sony think they are going to recapture with these new consoles like they did when the xbox360 nd ps3 came out in '05 and '06.

they better release info on the new consoles soon or they really will be in for a surprise come launch when there are still new next gen consoles sitting in stores like the wii u when it released. nintendo is already learning lightening doesnt strike twice. back in '05 there werent wii's left over after black friday, in 2012 there are certainly many wii u's left over. this is an indication these console companies like microsoft and sony need to stop with the secrecy because us hardcore gamers already know they have these new consoles and we will buy them on launch, i hope they dont assume everyone else is as noligable and eager as we are.

You talk like everyone knows what ouya and stembox is. Everything you just stated is so wrong my friend. You do know that this Gen has had the most console sold out of any other gen? Add the 70+ mill of Sony 70+ mill of xbox and 90+ mill of wii's and compare them to the prior gens. Nothing is eaten away their market share. I guess ipad and all the casual stuff is eating away into Nintendo market but Sony and Microsoft isn't in trouble what so ever. Once the consoles get announce everything new to the common consumer that isn't on the Internet will get eclipse. It isn't rocket science to know that the next Sony and Microsoft set of consoles are around the corner you know.

yeah so im sure their parents aren't going to rush out anytime soon after they just bought their kid a console to go buy a newer version of the same product. and thanks word police, don't write me a ticket...

Pretty sure it won't effect the current console manufacturers that badly, but it will be interesting to see if we have a 'console' that's not heavily locked down. Basically a PC with the user end experience of a console.

I think that MS and Sony are in the deep trouble! Nintendo Wii U has launched allready, it sells more than PS3 at this moment. Quia is coming 2013 march, in june its probably SteamBox time. So if MS and Sony brings new consoles in the end of the year 2013 it shall be too late for them. Gamers have been waiting since 2011 for a new console from MS and Sony, i am one of them. If SteamBox is very powerfull and games are cheap then i will abandon Sony for real! Sony once was very powerfull company but now anymore and if they come to the market last one with new console then its over for them.

Am not taking sides , but wouldn't his intention force them MS to move quickly to close their OS or find a way to cut into his profits also. before he even has a chance of getting that hot mess ubunto to work or be accepted. MS being a software giant they probably have tech or software laying around since he became rival. As a person that likes to gamble my money is on the bigger wallet or checkbook if you prefer .

I can recall only 3 games I would miss from Valve, namely Half Life Series, Counter Strike and Portal.

Valve are more likely to offer any future games as timed exclusives to the Steambox...exclusivity for 3-6 months maybe? I can't see them giving up on millions of sales by abandoning the major industry players that is Sony & MS.

If worse came to worse, I think it could affect MS more so than Sony due to the bigger support MS has received from Valve in the past.

In fact, it's precisely the kick up the butt Sony/MS need for next generation hardware & services!

Sometimes publishers have to take The risk of ignoring huge parts of The gaming World just to Push The own product. Just Look at what EA did. With making bf3 an Origin exclusive and Not bringing it to Steam

I really think the Steambox will end up being a joke, probably a mid-range PC at best. I spent $230 on a Geforce 660, a nice upper midrange card, and I can't see the Steambox having anything of that power inside of it. Valve will probabaly want to keep the price low if they want to appeal to the mass market. Current games on Steam, such as Far Cry 3 and even AC3 will run at medium settings and games coming out next year will probably run even worse on the Steambox.